Recent mergers and acquisitions (M&A) activity within the cargo GSA and GSSA  sectors has seen significant momentum this year, with prominent players such as ECS Group and Kales Group driving consolidation efforts to enhance their market reach and operational capacity.

ECS Group has been particularly active in expanding its global footprint. In early 2024, ECS acquired EFIS Maroc, a long-term partner specialising in air cargo and GSSA services in Morocco. This acquisition strengthens ECS’s presence in key Moroccan cargo hubs, including Casablanca, Marrakesh and Tangier, while integrating EFIS Maroc’s expertise into ECS’s broader digital and commercial network. This move highlights ECS’s strategy of bolstering its footprint in North Africa, a region that is becoming increasingly important in global airfreight logistics​.

Furthermore, ECS extended its influence into Latin America in December 2023 with the acquisition of Americas GSA, which has operations across key Central American countries, including Costa Rica, El Salvador, and Panama. This acquisition not only added 42 staff across 13 offices but also brought important airline contracts, including those with LATAM and Turkish Airlines. This significantly strengthens ECS’s operational capabilities in the region. In another strategic move, ECS expanded its European presence by acquiring International Airline Marketing (IAM) in Ireland, which secured ECS Group a 30% share of the Irish GSSA market, further diversifying its portfolio.

Meanwhile, Kales Group, another major player in the GSSA space, also made significant strides. In October 2024, Kales Group acquired ACT Global, a GSSA in Turkey, marking its expansion in a key emerging market.

These acquisitions reflect the growing consolidation in the GSSA sector, driven by a need for companies to scale up, integrate advanced digital tools and meet the increasing demands of airlines for financial guarantees and operational efficiencies. The trend is also partly motivated by smaller GSAs seeking investment from larger players to handle these pressures.

North America and Europe

Recent M&A activity in the cargo GSA and GSSA industries in North America showcases a similar trend of consolidation and expansion among key players.

In 2024, JetBlue partnered with Americas GSA to strengthen its domestic and international cargo operations. This collaboration leverages the technological prowess of ECS Group, a leader in the GSSA industry, which owns Americas GSA. The partnership is particularly significant as it aligns JetBlue with ECS Group’s innovative ‘Augmented GSSA’service model. This model offers tailored, advanced solutions that go beyond the traditional scope of GSA services, enabling JetBlue to optimise its cargo operations with greater efficiency and customisation.

In Europe, another key shift occurred when MSC Air Cargo, after acquiring a majority stake in Italy’s AlisCargo Airlines, decided to bring more of its sales operations in-house, ending its partnership with ECS Group. This strategic move is part of a broader trend where major logistics players, such as MSC, are internalising cargo operations. By doing so, MSC aims to have better control over its sales processes and reduce operational costs, signalling a growing preference among large companies to streamline their logistics and sales functions under direct management.

Since June 1, Swiss WorldCargo has resumed its partnership with Globe Air Cargo Bulgaria. The long-standing local partnership dates back to 2008, and has now been re-started to work closely again. In view of a closer collaboration, Globe Air Cargo hired an additional team member, who will be dedicated to work closely with Swiss WorldCargo. The two companies have rekindled their dormant, 16-year contract which sees the leading GSSA in Bulgaria carry out sales, booking, messaging, operational supervision, post-flight activities and claims, on behalf of Switzerland’s prestigious national air cargo carrier.

“Globe Air Cargo was proud to represent Swiss WorldCargo when it first began cargo operations in Bulgaria back in 2008, and we are more than delighted to welcome them back after a six-year gap. In fact, our joint contract was never terminated during all this time, which goes to show the value that trust and reliability create in a partnership,” says Globe Air Cargo Bulgaria managing director, Tania Mlechenkova. “It was clear from our initial face-to-face tender meeting, 16 years ago, that our two companies share a strong common interest in providing exceptional customer service through long-term stability and expertise. That is the credo we follow.”

Financials

GSSAs like ECS and Kales have been focusing on providing more comprehensive services beyond traditional sales, including handling operations, business intelligence, and financial management for airlines. This shift is also reflected in their financial results, where these companies have reported strong revenue growth, particularly in regions where they have recently expanded.

The financial performance of air cargo GSSAs has been closely tied to global air cargo trends, with the post-COVID environment normalising after the surge in cargo volumes and prices during the pandemic. The demand for streamlined, efficient cargo management has pushed GSSAs to innovate and invest in digital tools and advanced services, further driving their financial results in 2024.

In 2024, ECS Group, for instance, one of the largest GSSA companies globally, reported substantial revenues of around $530 million in 2023. This was due to its strategy of acquiring other companies and expanding its services beyond traditional GSSA roles to include advanced technological offerings, such as digital freight management and optimisation tools. However, there have been concerns over profitability due to the pressure of high costs and low margins, as noted by industry insiders.

Meanwhile, the GSSA sector as a whole has been dealing with challenging market conditions, including decreasing yields and excess capacity in 2024, which has affected financial performance.

In summary, while GSSA companies have been expanding and evolving their service models to cope with current market challenges, the financial landscape remains mixed, with profitability under pressure from both operational challenges and the growing trend of airline self-management.